It is unlikely youll ever get the furniture you ordered, but there could still be hope for those left in the lurch after the surprise closing of an Avenue U store. By filing for Chapter 7 bankruptcy on Jan. 12, M&B Discount Juvenile Furniture, 2309-2311 Avenue U, left its customers without their merchandise and without their moneybut with plenty of questions. Robert Musso, the attorney representing MB Furniture Inc., the stores corporate entity, in the bankruptcy proceeding, said those who have placed deposits on furniture could recoup their money, up to $2,225if that money is recovered after a liquidation of the companys assets. As for the furniture, Musso said it wont be waiting on customers doorsteps any time soon. That cannot happen because the responsibility for liquidating the inventory, including the specific items ordered by individuals has been turned over to the bankruptcy trustee, said Musso, a partner at the Court Street firm Rosenberg, Musso, and Weiner LLP. Chapter 7 is a liquidation proceeding; all non-exempt property is turned over to a bankruptcy trustee, who then converts it to cash for distribution to the creditors. In October, M&Bs Staten Island store, located on Amboy Road in Eltingville, also shut its doors. Customers visiting the Staten Island store were told via a handwritten sign to visit the Avenue U store to receive their merchandise. Musso said the stores closing was a culmination of the change in economic factors as a well as a change in the buying habits of customers. They are very upset they had to file, Musso said. Sheepshead Bay resident Robert Glenn is also upset. He lost his $600 deposit for an armoire he ordered from M&B. They knew they were going bankrupt, yet they accepted and cashed my check, he said. He said the store was like the Rock of Gibraltar on Avenue U. But Glenn said he doubts the store will ever set up shop in the neighborhood again. I dont think they will resurface because they have hurt too many people, he said. Creditors may attend a Feb. 8 meeting at the office of the U.S. Trustee, 111 Livingston Street, Suite 1102 at 9:30 a.m. The case number in United States Bankruptcy Court, Eastern District is: 0640080. If a creditor does not appear, they will not lose the right to file a proof of claim. For more information, call 212-896-2990.
©2006 Community News Group
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